252. Why emotion is the big enemy of investors

<p>With approximately 41,000 companies listed worldwide, how’s an investor to choose? And once invested, how do you keep your emotions in check? In this interview, Bertrand Cliquet, co-manager of <a href='https://www.fundcalibre.com/elite-funds/lazard-global-equity-franchise'>Lazard Global Equity Franchise</a> fund, tells us how this fund’s emphasis on good economic franchises filters that list down to an eclectic mix of just 26 stocks. Bertrand also explains how the process uses a behavioural analysis filter and why the team sticks with a conservative approach to combat inflation and volatility in the markets. <br/><br/><b>What’s covered in this episode: </b></p><ul><li>The characteristics that make an ‘economic franchise’</li><li>Three examples of companies with an economic franchise</li><li>The investment case for Tapestry, the owner of Kate Spade, Coach and Stuart Weitzman</li><li>How a change in management at Tapestry influenced profits</li><li>How the team narrows down its investable universe to just 220 names</li><li>Why emotion is the big enemy of investors </li><li>The team’s conservative approach to inflation and recession</li><li>Why heightened volatility has provided more opportunities</li><li>Recent rotations in the portfolio </li><li>Why Covid forced the managers to go back to the fundamentals of medical equipment company Medtronic</li><li>Does looming inflation affect the long-term positioning of the portfolio?</li><li>Why the fund avoids big value sectors such as banks, commodities and oil and gas</li></ul><p><b>More about the fund: <br/></b>The <a href='https://www.fundcalibre.com/elite-funds/lazard-global-equity-franchise'>Lazard Global Equity Franchise</a> fund can invest in any business around the world, but because the managers are looking for industry leaders, there is a natural bias towards larger-sized companies. Run by a four-strong team, the managers’ systematic approach to portfolio construction means that behavioural biases should be removed, offering an attractive opportunity in the g